Buyouts Are Back

The domestic buyout market is showing signs of life, after an August spent drowning. First came word this morning that Bain Capital has agreed to lead a $2.2 billion buyout of telecom equipment maker 3Com Corp. The deal pays out $5.30 per share, which works out to a 44% premium over yesterday’s closing price. 

Next, Thomson Financial sent over new data showing that September deal volume has risen more than threefold from its August nadir — and that doesn’t even include the 3Com deal!

Thomson reports over $16.71 billion worth of U.S. buyout deals in September, which represents approximately one-third of all domestic M&A. September is still on track to be the slowest month of 2007, but it’s far ahead of the $5.72 billion in buyout deals from August.

September 2007 also has outperformed three different months of 2006: February, April and August. Download the data here: USbuyouts.xls